IMF forecasts 7.9% inflation rate in Azerbaijan in 2015

The International Monetary Fund (IMF) has published updated World Economic Outlook (WEO), noting that the consumer price index (CPI) in Azerbaijan has medium-term growth trend. According to the WEO, CPI in Azerbaijan will make up 5% in 2015, another 4.2% in 2016 and will rise up to 4.5% in 2020.

According to the Fund’s forecasts, by the end of 2015 country’s consumer inflation will total 7.9% (Q4 of 2015 against Q4 of 2014), and will drop to 0.5%.at the end of 2016.

Meanwhile, State Statistics Committee of Azerbaijan has reported 3.8 % inflation rate for 8 months of 2015. Early 2015, CESD forecasted 8.0 % inflation rate for the country. In spite of the fact that State Statistics Committee reports low inflation rate, CPI is higher than official figure in fact.

The IMF has reported that in the medium term prospect the annual economic growth in Azerbaijan will hardly exceed 3.5%. According to the WEO, in 2015 Azerbaijan’s GDP will grow by 4% and in 2016 by 5%. However, in 2020 the economic growth will be only 3.4%.

According to Fund’s forecasts, in 2015 the current account surplus of Azerbaijan’s balance of payments will amount to 3% of GDP, in 2016 – 2.7% and in 2020 – 5.1%.